12A & 80G Registration
Online 12A & 80G Registration.
12A and 80G Registration
In the form of a Charitable Trust/Society/Section 8 Company, an NGO (Non-Governmental Organization) is established solely to serve non-profit humanitarian purposes, and once such entity is formally registered, it is eligible for tax exemptions, benefits, and reliefs, as well as the provision of tax deductions for donors. Any income an NGO earns, such as service/production/donation, will be treated as normal taxable income without regard to the purpose of such income unless that NGO has obtained 12AB and 80G registrations online. With the help of 12AB registration, all the income earned by the NGO is exempted from tax. Hence, such NGO can utilize all earnings in promoting it’s objectives. With the help of 80G registration, the tax on the donations offered by the donors for the upliftment of the society is exempted. Only NGOs and Charitable Organizations that meet the following criteria are eligible for the 80G and 12AB registrations:
What is 80G Registration
TAX EXEMPTION BENEFITS TO DONORS
The Income Tax Department issues an 80G Certificate to a Section 8 Company, Charitable Trust, or a Non-Profit Organisation or Non-Governmental Organisation (NGO). The goal of the 80G certificate is to encourage more people to donate money to charities like these. The donor benefits from donating to such an NGO in that he receives a tax exemption on 50% of his donation because donations can be deducted from their Gross Total Income. To qualify for the tax exemption, the donor must attach a stamped receipt from the NGO to the donation – the receipt must include the organization’s name, date, PAN and the 80G Registration Number. The provisional 80G registration will be valid for 3 years.